Employee Leasing Quotes : PEO Blog

If you have decided that an employee leasing/PEO service is a smart choice for your business, the next step is determine what specific goals you want to achieve. With so many companies to choose from that specialize in specific industries, markets and states- which one will be the best choice for you?

For example, a contractor that needs to keep workers’ compensation costs to minimum has a totally different objective than a physician’s office in the need of a strong benefits package. This is where the search can be difficult. Many employee leasing companies these days don’t even offer benefits. Their niche may be strictly in the construction and trades industry with an offering of competitive workers’ compensation rates and payroll.

You’ll also find what I would call “hybrid” employee leasing companies that target blue and gray collared employers with limited benefit packages so they can say they offer all the “bells and whistles” too. The final category would be PEOs that really target the white and grays with strong benefit and human resource services. These employee leasing companies will also provide more “extras” like pay cards, special reports and employee assistance programs.

Within those basic tiers of employee leasing companies there are still many factors that separate each. Many in each category, for example, have workers’ compensation policies that only cover the employees in the state they operate from. Some may cover the state of their home office and a few surrounding states, with others offering nationwide coverage.

Health insurance and benefits need to be carefully selected, as well. Great Blue Cross and Blue Shield rates aren’t worth much if you happen to be in an area where the doctor and hospital coverage is limited. A cut-rate plan that requires your employees to drive an hour to see the doctor ends up being more of a nuisance than a benefit.

As you can imagine the overall costs and fees will vary per group. The goal is to really drill down to your business needs and work from there. If you need help or just have questions, call us. Our information is free and helpful!

Employee Leasing Quotes was created to help businesses choose an employee leasing company that fits their unique needs. Please call if you’re interested in seeing what advantages an Employee Leasing company could do for your business. We can be reached by calling 1-888-582-8388 between the hours of 8:30-5:30 EST.

At just 20 years old, the Employee Leasing, a.k.a. PEO (Professional Employer Organization), industry continues its steamrolling success at a hefty growth rate of almost 30% per year. Approximately 2.5 million Americans are currently co-employed by one of the more than 400 Employee leasing companies operating in the 50 states.

The reason for this trend is the need to outsource the frustrating “business of employment” tasks- such as hiring, human resource training, payroll, benefits and regulatory compliance. Between 1980 and 2000, the number of labor laws and regulations grew by almost two thirds, according to the federal Small Business Administration. This same study estimated owners of small or mid-sized business spent up to a quarter of their time on employment-related paperwork.

Employee leasing companies assume much of this burdensome responsibility and help businesses comply with all regulations. The employer can then focus on the income-producing areas of the business, where he/she is the expert.

Another advantage of using an employee leasing company is their ability to arrange a business’ workers’ compensation coverage with major insurance carriers, as well as manage the claims. They also offer human resources services delivered by certified professionals. Most provide services such as customized employee handbooks, recruitment, pre-employment screening, wage and compensation planning, and assistance with job descriptions.

Employee leasing companies help tens of thousands of businesses provide employee benefits such as health care plans, 401(k) tax-free savings accounts and other perks to their employees. Sponsored benefit programs can include major and supplemental health-care choices, including vision and dental care, employee assistance programs and even adoption assistance. An estimated 95 percent of workers in an employee leasing arrangement have access to a pension plan.

Almost any business can find value in a PEO relationship- clients range from accounting firms and construction to manufacturers and government agencies. The average client is a small business with an average of 19 employees, but some clients have fewer than three employees. Increasingly, larger businesses are signing up, too.

The employee leasing company enables each client company to lower employment costs and increase their business’s bottom line. The client can maintain a simple in-house HR infrastructure or none at all by relying on the employee leasing company. Their professionals can provide critical assistance with employer compliance, which helps protect the client against liability. In fact, employee leasing companies have an 88 percent client retention rate due to strong client satisfaction.

Employee Leasing Quotes was created to help businesses choose an employee leasing company that fits their unique needs. Please call to discover the benefits employee leasing services could have for your business. We can be reached by calling 1-888-582-8388 between the hours of 8:30-5:30 EST.

With Employee Leasing/ PEO services growing at a healthy 25-30% rate a year for several years now, the word is out on the benefits of outsourcing. So when choosing the right Employee Leasing company becomes the goal, look closely at a few important factors to make sure you’ve chosen the right partner.

1. Pay close attention the marketing material the Employee Leasing company has. A company’s website, brochures and business cards can give you immediate feedback as to what kind of industries they serve.
2. Find out how long the Employee Leasing company has been in business. Are they registered with the state? There have been bad apples among the trees over the years, just as any industry has. What local or national trade associations are they a member of?
3. Who is their workers’ compensation carrier, and for how long? Like any other business, Employee Leasing companies face yearly workers’ comp audits, and if the insurer finds bad claims and management, a renewal is not awarded. Obviously without workers’ compensation they can’t continue to operate, and the scramble begins to find a replacement. If a company has had several carriers over the years, you need to know why.
4. Does the workers’ compensation policy cover your employees when working out of your state?  Many of the policies don’t provide this coverage, so it’s important that you ask. Also, find out specifically what types of deductibles apply if claims occur.
5. Ask if your rate drops when the $7,000 Federal and state unemployment tax caps are met on employees. A large percentage of Employee Leasing companies continue to bill at the same rate throughout the year. While one particular Leasing company’s rates may look lower than the others, if they don’t lower your percentage on these taxes, you could end up paying much more in the end.
6. Compare the little numbers, such as new employee setup fees, minimum payroll run fees- even delivery costs can vary dramatically. A difference in delivery fees of only $10 a week is a $520 disparity between companies over one year.
7. If employee benefits are important to your company, make sure they are suitable for where your employees live and work. Even companies like Aetna or Blue Cross Blue Shield have areas where coverage is limited. Having benefits that require lengthy travel dampens the perk.
8. Get references. It can require a great deal of time, depending on the size of your company, to begin using the services of an Employee Leasing company. References can calm a lot of fears regarding the consistency of payroll delivery, how workers’ comp claims have been handled and the overall service the Employee Leasing company gives to their clients.

The benefits of using Employee Leasing/ PEO services can have an immediate impact on a business’ profitability. Doing your homework up front to choose which company to partner with will determine how much!

Employee Leasing Quotes was created to help businesses choose an Employee Leasing company that fits their unique needs. Please call if you’re interested in seeing what advantages an Employee Leasing company could do for your business. We can be reached by calling 1-888-582-8388 between the hours of 8:30-5:30 EST.

Over the years I’ve dealt with many business owners who confuse Employee Leasing (a.k.a. PEO services) with staffing or temporary labor companies. In many cases those same business owners have had experience with one or the other services, but really aren’t familiar with the differences. So what are they, and how do each benefit employers?

To begin with, an Employee Leasing company’s main benefit to an employer is to relieve the non-profit producing tasks of dealing with employee administrative hassles- such as payroll, employee benefits, human resources and workers’ compensation. By outsourcing these to an Employee Leasing company, the employer can focus on what they do best and grow their bottom line.

Throughout the years, business owners have faced increasingly escalated government rules regarding employment. Employee Leasing companies assume many of these responsibilities and provide expertise in human resource management.

An Employee Leasing company is typically the most cost-effective option for an employer when the business owner has five or more full-time employees. Costs related to workers’ compensation, unemployment tax and payroll administration are much less in comparison to a staffing or short-term employment arrangement. As you can imagine the more employees as a business has, the more time has to be devoted to employee issues- therefore the value of outsourcing this work becomes a more profitable decision.

A business can benefit by using a staffing or temporary help service in variety of ways, as well. The obvious advantage is the ability to access short-term help immediately. Whether it is a construction project with a timeline that requires temporary labor, or a secretary who takes a leave of absence for an extended period of time; accessing pre-qualified help at a moment’s notice is when these services can be an employer’s best friend.

The administrative costs such as payroll, unemployment taxes and workers’ compensation are handled by the staffing company. The employer also relieves themselves of any benefit requirements like health care, vacation, sick or holiday pay. But, there is a premium to pay for these short-term employment services. The overall employee-related costs will be much higher including fees that are added for using staffing companies. The added risks and administrative costs for the services they’re providing is exactly why staffing companies are to be used as a temporary solution.

Just as convenience and grocery stores fill a specific need, the services that Employee Leasing and staffing companies provide (although different) are an invaluable resource for businesses.